CHAP. CCLXIX.—AN ACT TO REQUIRE NATIONAL BANKS TO RESTORE March 3, 1873. Vol. XVII, p. 603. the capital stock to be made up by rata upon stock &c. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That all Deficiencies in national banks which shall have failed to pay up their of national banks capital stock, as required by law, and all national banks assessment pro whose capital stock shall have become impaired by losses or holders, within, otherwise, shall, within three months after receiving notice thereof from the comptroller of the currency, be required to pay the deficiency in the capital stock by assessment upon the shareholders, pro rata, for the amount of capital stock held by each and the Treasurer of the United States Interest to be withheld until, shall withhold the interest upon all bonds held by him in &c. trust for such association, upon notification from the comptroller of the currency, until otherwise notified by him; and if such banks shall fail to pay up their capital stock, and shall refuse to go into liquidation, as provided by law, for three months after receiving notice from the comptroller, a receiver may be appointed to close up the business of the association, according to the provisions of the fiftieth section of the national-currency act. Receiver to be appointed if, &c. " 1864, c. 106, s. 50, vol. 13, p. 114, ante, p. 177. injunction, &c., to court. SEC. 2. That section fifty-seven of said act be amended No attachment, by adding thereto the following: "And provided further, issue before final That no attachment, injunction, or execution shall be issued judgment in State against such association, or its property, before final judg-Ibid., ante, p. ment in any such suit, action, or proceeding in any State, county, or municipal court." 180. The word “ra tional" not to be used by certain companies or cor post, p. 206. SEC. 3. That all banks not organized, and transacting business under the national-currency act, and all persons, companies or corporations doing the business of bankers, porations. brokers, or savings institutions, except saving-banks, See R. S., 5243, authorized by Congress to use the word "national" as a part of their corporate name, are prohibited from using the word "national" as a portion of the name or title of such bank, corporation, firm, or partnership; and every Penalty for such bank, corporation, or firm, which shall use word using such word. "national" as a portion of their corporate title or partnership name six months after the passage of this act, shall be subject to a penalty of fifty dollars for each day thereafter in which said word shall be employed as aforesaid as part of such corporate name or title, such penalty to be recovered by action in any court having jurisdiction. SEC. 4. That it shall be the duty of the comptroller of examine yearly the currency to cause to be examined each year the plates, dies, but-pieces, and other material from which the national Comptroller of the currency to the plates, &c., from which the bank circulation is printed. rial to be destroyed. bank circulation is printed in whole or in part, and file Certain mate-in his office annually a correct list of the same; and such material as shall have been used in the printing of the notes of national banks which are in liquidation, or have closed business, shall be destroyed under such regulations as shall be prescribed by the Comptroller of the Currency, and approved by the Secretary of the Treasury; and the expense of such examination and destruction shall be paid out of any appropriation made by Congress for the special examination of national banks and bank plates. Approved, March 3, 1873. Expenses. Annual report. See act of Feb. 18, 1875, correct PROVISIONS OF THE REVISED STATUTES RELATING SEC. 333. The Comptroller of the Currency shall make an annual report to Congress, at the commencement of its ing Rev. Stat., session, exhibiting— post, p. 213. Condition of tions. 61. First. A summary of the state and condition of every national associa- association from which reports have been received the preAnte, p. 181, 8. ceding year, at the several dates to which such reports refer, with an abstract of the whole amount of banking capital returned by them, of the whole amount of their debts and liabilities, the amount of circulating notes outstanding, and the total amount of means and resources, specifying the amount of lawful money held by them at the times of their several returns, and such other information in relation to such associatious as, in his judgment, may be useful. Circulation, when exempted from tax. TAX ON CIRCULATION. SEC. 3411. Whenever the outstanding circulation of any bank, association, corporation, company, or person is reduced to an amount not exceeding five per centum of the chartered or declared capital existing at the time the same was issued, said circulation shall be free from taxation; and whenever any bank which has ceased to issue notes for circulation, deposits in the Treasury of the United States, in lawful money, the amount of its outstanding circulation, to be redeemed at par, under such regulations as the Secretary of the Treasury shall prescribe, it shall be exempt from any tax upon such circulation. SEC. 3412. Every national banking association, State persons or State circulation. bank, or State banking association, shall pay a tax of ten Tax on notes of per centum on the amount of notes of any person, or of any State bank or State banking association, used for circulation and paid out by them. banks used for See act of Feb. 8, 1875, post, p. 212. State Tax on notes of towns, cities, &c, tion. SEC. 3413. Every national banking association, bank, or banker, or association, shall pay a tax of ten per used for circulacentum on the amount of notes of any town, city, or Ibid. municipal corporation, paid out by them. turns of notes of State banks, &c. Ibid. SEC. 3414. A true and complete return of the monthly Monthly reamount of circulation, of deposits, and of capital, as afore- persons, cities, said, and of the monthly amount of notes of persons, town, paid out. city, or municipal corporation, State banks, or State banking associations paid out as aforesaid for the previous six months, shall be made and rendered in duplicate on the first day of December and the first day of June, by each of such banks, associations, corporations, companies, or persons, with a declaration annexed thereto, under the oath of such person, or of the president or cashier of such bank, association, corporation, or company, in such form and manner as may be prescribed by the Commissioner of Internal Revenue, that the same contains a true and faithful statement of the amounts subject to tax, as aforesaid; and one copy shall be transmitted to the collector of the district in which any such bank, association, corporation, or company is situated, or in which such person has his place of business, and one copy to the Commissioner of Internal Revenue. In default of returns, Commis esti SEC. 3415. In default of the returns provided in the preceding section, the amount of circulation, deposit, capital, sioner to and notes of persons, town, city, and municipal corporations, State banks, and State banking associations paid out, as aforesaid, shall be estimated by the Commissioner of Internal Revenue, upon the best information he can obtain. And for any refusal or neglect to make return and payment, any such bank, association, corporation, company, or person so in default shall pay a penalty of two hundred dollars, besides the additional penalty and forfeitures provided in other cases. SEC. 3416. Whenever any State bank or banking associa- National bank tion has been converted into a national banking association, and payment of and such national banking association has assumed the State bank. liabilities of such State bank or banking association, including the redemption of its bills, by any agreement or understanding whatever with the representatives of such State bank or banking association, such national banking association shall be held to make the required return and payment on the circulation outstanding, so long as such circulation shall exceed five per centum of the capital before such conversion of such State bank or banking association. to make return tax of converted Provisions for tax on deposits, enlation, not to banks. SEC. 3417. The provisions of this chapter, relating to the capital, and cir- tax on the deposits, capital, and circulation of banks, and apply to national to their returns, except as contained in sections thirty-four See act of Feb, hundred and ten, thirty-four hundred and eleven, thirty18, 1875, correct- four hundred and twelve, thirty-four hundred and thirteen, ing Rev. Stat, post, p. 213. and thirty-four hundred and sixteen, and such parts of sections thirty-four hundred and fourteen and thirty-four hundred and fifteen as relate to the tax of ten per centum on certain notes, shall not apply to associations which are taxed under and by virtue of Title "NATIONAL BANKS.” ORGANIZATION AND POWERS OF NATIONAL BANKS. Duties and liabilities of asso 45, ante, p. 174. SEC. 5153. All national banking associations, designated ciations when de- for that purpose by the Secretary of the Treasury, shall be signated as depositaries of depositaries of public money, except receipts from customs, public moneys. 3 June, 1864, s. under such regulations as may be prescribed by the Secretary; and they may also be employed as financial agents of the government; and they shall perform all such reasonable duties, as depositaries of public moneys and financial agents of the government, as may be required of them. The Secretary of the Treasury shall require the associations thus designated to give satisfactory security, by the deposit of United States bonds and otherwise, for the safe-keeping and prompt payment of the public money deposited with them, and for the faithful performance of their duties as financial agents of the government. And every association so designated as receiver or depositary of the public money shall take and receive at par all of the national currency bills, by whatever association issued, which have been paid into the government for internal revenue, or for loans or stocks. * What associations are gov. ters 2, 3, and 4 of OBTAINING AND ISSUING CIRCULATING NOTES. SEC. 5157. The provisions of chapters two, three, and erned by chap. fourf of this Title, which are expressed without restrictive this Title. words, as applying to "national banking associations," or to "associations," apply to all associations organized to carry on the business of banking under any act of Congress. SEC. 5158. The term "United States bonds," as used Ibid., 8. 4, ante, throughout this chapter, shall be construed to mean registered bonds of the United States. United States bonds defined. p. 154. SEC. 5159. Every association, after having complied with the provisions of this Title, preliminary to the commence bonds to bo de p. 160. creased upon in ment of the banking business, and before it shall be author- United States ized to commence banking business under this Title, shall posited before commencing transfer and deliver to the Treasurer of the United States business. any United States registered bonds, bearing interest, to an Ibid., s. 16, ante, amount not less than thirty thousand dollars and not less than one-third of the capital stock paid in. Such bonds shall be received by the Treasurer upon deposit, and shall be by him safely kept in his office, until they shall be otherwise disposed of, in pursuance of the provisions of this Title. SEC. 5160. The deposits of bonds made by each associa- Bonds to be intion shall be increased as its capital may be paid up or in- crease of capital. creased, so that every association shall at all times have on deposit with the Treasurer registered United States bonds to the amount of at least one-third of its capital stock actually paid in. And any association that may desire to reduce its May be dimincapital or to close up its business and dissolve its organiza- tion of capital. tion, may take up its bonds upon returning to the Comptroller its circulating notes in the proportion hereinafter required, or may take up any excess of bonds beyond onethird of its capital stock, and upon which no circulating notes have been delivered. Ibid. ished upon re uo Ibid. SEC. 5161. To facilitate a compliance with the two preced. Exchange of coupon for regis ing sections, the Secretary of the Treasury is authorized to tered bonds. receive from any association, and cancel, any United States coupon bonds, and to issue in lieu thereof registered bonds of like amount, bearing a like rate of interest, and having the same time to run. of 1864, s. 19, ante, p. SEC. 5162. All transfers of United States bonds, made Manner making transfers by any association under the provisions of this Title, shall of bonds. be made to the Treasurer of the United States in trust for the association with a memorandum written or printed on Act June 3, each bond and signed by the cashier or some other officer 162. of the association making the deposit. A receipt shall be given to the association, by the Comptroller of the Currency, or by a clerk appointed by him for that purpose, stating that the bond is held in trust for the association on whose behalf the transfer is made, and as security for the redemption and payment of any circulating notes that have been or may be delivered to such association. No assignment or transfer of any such bond by the Treasurer shall be deemed valid unless countersigned by the Comptroller of the Currency. * * * * * SEC. 5166. Every association having bonds deposited in the office of the Treasurer of the United States, shall, once, or oftener in each fiscal year, examine and compare the bonds pledged by the association, with the books of the Comptroller of the Currency and with the accounts of the |